Analyzing the integrated effect of circular economy, Lean Six Sigma, and Industry 4.0 on sustainable manufacturing performance from a practice‐based view perspective

Dounia Skalli, Abdelkabir Charkaoui, Anass Cherrafi, Jose Arturo Garza‐Reyes, Jiju Antony and Alireza Shokri

Business Strategy and the Environment, 2024, vol. 33, issue 2, 1208-1226

Abstract: This study explores the interplay linking Lean Six Sigma (LSS), the Circular Economy (CE) and Industry 4.0 technologies (I4.0T), and their impact alone or combined, on sustainable organizational performance (SOP) within manufacturing firms. Using the existing literature, six hypotheses are identified and then analyzed following the Structural Equation Modeling method with SmartPLS software. A survey was designed and administrated in the Moroccan context. Based on the results, it was found that LSS, CE and I4.0T have a positive effect on SOP. Moreover, I4.0T significantly impacts both LSS and SOP. However, I4.0T had no significant effect on CE. Furthermore, the results show that LSS has a positive mediation role as a driver for the successful implementation of I4.0T within the SOP. This study will enable manufacturing professionals to understand the determinants of sustainable performance helping them to define their future business strategies. Also, it sets the benchmark for companies looking to achieve sustainable objectives by integrating I4.0 technologies into CE practices and the LSS approach. This study is a first attempt to examine the link between LSS, CE and I4.0 to achieve high triple bottom line gains (environmental, social and economic) within companies considering Morocco, an emerging economy.

Date: 2024
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